Euro subdued as ECB cuts interest rates

The pound opens today’s session trading in a narrow range, with GBP/EUR stable at €1.1856, and GBP/USD flat at $1.3134. GBP/CAD is trading sideways at CA$1.7835, while GBP/AUD and GBP/NZD hold steady at AU$1.9550 and NZ$2.1250, respectively.

Pound (GBP) subdued on public debt concerns

The pound (GBP) traded sideways on Thursday, following a warning that UK debt may triple over the next 50 years.

The Office for Budget Responsibility (OBR) warned the UK’s debt pile could rise to 270% of GDP by the second half of the century as the UK faces an ageing population, the climate crisis and security risks.

UK data remains in short supply today, likely leaving the pound without a strong directional bias through the remainder of the session.

Euro (EUR) muted in wake of ECB rate decision

The euro (EUR) was subdued yesterday as the European Central Bank (ECB) delivered its second interest rate cut of the year.

As the cut had already been priced in by markets, the resulting impact on the euro was fairly muted, despite the bank also downgrading its growth forecasts.

Today sees the publication of the latest Eurozone industrial production figures, with the euro poised to weaken as economists forecast production growth will have contracted for a fourth consecutive month in July.

US dollar (USD) weakens on weaker-than-expected PPI figures

The US dollar (USD) came under pressure during yesterday’s session following the publication of the latest US producer price index.

In contrast to consumer prices, underlying price pressures in the US manufacturing sector came in below expectations in August, stoking Federal Reserve rate cut bets and dragging on USD.

Closing out this week’s session is the publication of the latest US consumer sentiment index. Economists forecast household morale will see a modest improvement this month. Will this be enough to lift the US dollar?

Canadian dollar (CAD) slides despite rising oil prices

The Canadian dollar (CAD) stumbled on Thursday, with further losses held off thanks to a continued uptick in global oil prices.

In the absence of any notable Canadian data, movement in the ‘loonie’ is likely to remain closely linked to oil price dynamics through the end of the week.

Australian dollar (AUD) supported by rising commodity prices

The Australian dollar (AUD) consolidated its recent gains overnight on Thursday, with the ‘Aussie’ drawing support from an uptick in commodity prices.

New Zealand dollar (NZD) pressured by weak PMI reading

The New Zealand dollar (NZD) ticked lower in overnight trade as the latest BusinessNZ PMI reported that growth in the manufacturing sector continued to contract last month.